Employee Health Care Savings and Benefits Accounts
As an important part of your benefits strategy, health benefits accounts such as flexible spending account (FSA), health savings account (HSA), or a health reimbursement arrangement (HRA) can help you attract employees, reduce your tax bill, and control healthcare costs, especially in combination with a high-deductible plan.
What You Get With Employee Health Care Spending and Benefits Accounts?
Health benefit plans allow employers and employees to set aside funds pretax to help employees pay for qualified medical expenses. Included with employee health care spending and benefits accounts:
- Tax savings for employers and/or employees
- Unused contributions may be carried over to future years for an HAS and at the employer’s discretion for an HRA
- Tax-free distributions/claims for qualified medical expenses
- Tax-free interest and earnings from account assets (HSA only)
- Certain benefits may be transferred between employers
- Support from Paychex benefit specialists
Benefit Account Options
Flexible Spending Account (FSA)
An FSA allows employers and employees to pretax money to pay for qualified out-of-pocket healthcare costs.
Dependent Care Flexible Spending Account
A dependent care FSA allows your employees to set aside pretax dollars to pay for dependent child day care or elder care expenses.
Health Savings Account (HSA)
Similar to an FSA, an HSA allows your business and employees to set aside pretax money to pay for qualified health expenses. An HSA may also earn tax-free interest.
Health Reimbursement Arrangement (HRA)
An HRA is funded by employers to help their employees pay for qualified medical expenses that their health plan doesn’t cover.
Simplify Employee Health Care with Spending Accounts
Provide Access to HRA, HSA, and FSA Specialists
Simply call our toll-free support line and our Paychex specialists can help you set up and manage your FSA, HSA, or HRA benefits.
Help Employees Save on Taxes
FSAs and HSAs can help employees save an average of 30% in federal, state, and local taxes on out-of-pocket premiums and an average of $115 per participant in FICA payroll taxes.1
Reduce Your Tax Liability with Health Benefit Accounts Administration
FICA and FUTA taxes can be reduced with benefits such as HSA, FSA, since contributions are made before taxes are taken out. This could effectively reduce an employee’s taxable income.
Other Products to Consider
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